MAGNIT PJSC (MGNT)
Press-Release | Moscow | October 15, 2020
Magnit Opens Metropolitan Convenience Store
The 665-square-meter store with a café opened its doors in Moscow at 45 Saltykovskaya Street. The Company updated the store to cater to the needs of metropolitan residents, completely reworking the interior and optimizing the assortment while also making the overall ambiance more emotionally charged and digitalizing every aspect of the store itself.
Moscow, Russia (October 15, 2020): Magnit PJSC (MOEX and LSE: MGNT; the Company), one of Russia's leading retailers, announce the opening of the metropolitan convenience store. Historically, Magnit Convenience stores in large cities were very similar to those in smaller localities. At the same time, customer preferences in metropolitan areas are distinguished by a number of important characteristics. Magnit continues to break its formats down into clusters based on customer trends prevalent in different localities, and has now opened a metropolitan store that was designed based on the look-and-feel approach and focuses on ambiance, useful services, and digital solutions while maintaining attractive prices. For improved customer convenience, the same building also houses a Magnit Pharmacy. The Company plans to use the elements of the metropolitan store concept in different combinations in other localities in the future.
The updated Magnit store boasts an assortment of around 6,000 SKUs, with particular focus on the Fresh and Ultra-Fresh categories, which occupy 35% of the sales area: fruits, vegetables, dairy, and fresh bakery products. The assortment was expanded with Magnit Freshness and other private labels, such as the Company's own products and local offerings, including farm products. In addition to traditional articles, the assortment was further extended with exotic fruits, berries, culinary products, and cross-category offers. The range of dietary products and products for balanced diet was broadened as well. The number of items in the middle and middle+ price segments was increased across the entire assortment. Magnit also highlighted its selection of wines, picked to satisfy the tastes of the capital's residents.
The store has its own bakery and a professional coffee machine. Customers may stop for a bite in the 11-seat café with free Wi-Fi. The assortment of eat-and-go products includes 100 SKUs such as bakery products, combo sets, and fresh juices.
The store space area is arranged with due consideration of the purposes a customer might have when visiting the store, and provides for three different customer paths. For example, a customer wishing to stock up on products for the entire family can easily make their way through all products categories. The second path was created for novelty enthusiasts: its passes interesting propositions in the Fresh category, coffee, confections, ready-to-eat meals, and ends at self-service checkouts. The third path will suit active gadget users who want to spend less time shopping and usually make fairly small purchases. It includes the most attractive propositions in the fruits and vegetables area, as well as dairy and bakery products and drinks.
The store was outfitted with upgraded equipment and utilizes a variety of digital solutions in order to help customers shop, reduce time for purchases, and optimize routine processes for the store personnel. The new store is also the first to have dual-mode checkouts that can work both as self-service terminals and as standard cashier-operated checkouts. This will help the store avoid the queues and enable it to change the mode of operation depending on traffic intensity. LED screens in the sales area transmit useful content; there are also media shelves that make the contact with customers more interactive. The store is fully equipped with bicolor electronic price tags that allow updating product information faster and save time for the staff. Customers may use price checkers and customer displays at checkouts, test the face-recognition-based payment technology, or scan goods using the MobiScan solution and pay for them at self-service checkouts.
The store design and zoning have been updated with the use of comfortable colors. Decorative elements are made of cardboard and plywood instead of plastic. The principles of Magnit's sustainable development strategy were also taken into account when creating the new concept: for example, the Company installed reverse vending machines (special kiosks to collect used plastic packaging), as well as separate stations for collection of plastic caps and batteries.
"Large cities are characterized by their own distinctive consumer behavior patterns. There is now a surging demand for fresh products and healthy nutrition; customers are trying to save time, and look not only at the price and quality of products, but also at emotions they get during shopping. It's important for us to be aligned with the preferences of metropolitan residents, and that's exactly why we've established a separate store cluster to cater to their needs, which offers a wide variety of options in one place. We'll study the customer feedback, identify areas that require improvement, and will use different elements of this new store concept in our development and remodeling program,"-said Ruslan Ismailov, Magnit's Deputy CEO and Director for Retail Chain Management.
For further information, please contact:
Director for Investor Relations
Office: +7 (861) 210-48-80
Director for Investor Relations
Office: +7 (861) 210-9810 x 15101
Note to editors:
Public Joint Stock Company "Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of June 30, 2020, Magnit operated 38 distribution centres and 20,894 stores (14,581 convenience, 472 supermarkets and 5,841 drogerie stores) in 3,710 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the reviewed IFRS 16 management accounts results for 1H 2020, Magnit had revenues of RUB 763.4 billion and an EBITDA of RUB 86.9 billion. Magnit's local shares are traded on the Moscow Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB.
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